Thu, 08 Apr 2010 00:00:00 +0200

Yen Makes Big Gains on EUR

The Japanese yen has strengthened against most of its major counterparts, continuing to prove that for the time being this is the solid currency that traders can rely on to provide them with steady profits. The yen extended gains versus the EUR on Wednesday, to trade above 124.60 amid a broad sell-off in the EUR. The JPY also saw bullishness against the USD and closed at 93.40. Investors worry over a recent rise in the JPY as it makes Japanese products less competitive abroad and hurts the value of overseas sales when translated back into the Japanese currency. With steady gains primarily against the Dollar, much of the yen's bullish movement could be contributed to the repatriation of overseas earnings by Japanese companies into the local economy. This has had a positive effect on major JPY currency pairings, as the rising turmoil in the market is leading to more investment in the Japanese currency.

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